budget statement 2012.indd - Grenada Customs & Excise Division

Principal Repayments: $330.5 million (an increase of 5.2 percent)
The five largest allocations are:
Debt – $404.8 million (39.6% of total expenditure)
Ministry of Education and Human Resources - $109.6 million
(10.7%)
Ministry of Finance - $73.4 million (7.1%)
Ministry of Health - $65.6 million (6.4%)
Ministry of Works - $58.6 million (5.7%)
Mr. Speaker, you would note that the Public Debt accounts for 39.6%
of total expenditure. This includes interest payments of $74.3 million,
an increase of 42.7 percent. The main reason for this is the rising
interest on the commercial debt which was restructured in 2005. It
may be recalled that the restructuring features a step-up coupon. It
began with an interest rate of 1% from September 2005. This interest
rate increased to 2.5% from September 2008. In September 2011, this
rate again increased to 4.5%. This means that the interest payments
on this restructured Bond will increase from $17.7 million last year
to $31.8 million this year.
This Budget breaks virgin ground with the introduction of a new Vote
named “Office of the Prime Minister”, patterned along the Canadian
model. In so doing, we are seeking to consolidate in one place
all persons who hold what may be called political contracts. These
include advisers, personal assistants and drivers. Hitherto, these
persons were provided for under various ministries.
As a matter of deliberate policy, Government is acting to make as
transparent as possible, the financial impact on the Treasury of this
category of State employees. Very importantly, this move will be
accompanied by the standard disciplinary code and accountability
procedures for public finances, and these will be applicable to all staff
holding political contracts.
Of the $457.8 million in current expenditure, $239.9 million will
be spent on personal emoluments; $74.3 million are earmarked for
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2012 Budget Statement